^

Original-Research: ASMALLWORLD AG - from NuWays AG

08.10.2025 / 09:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

Group.

The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

---------------------------------------------------------------------------

Classification of NuWays AG to ASMALLWORLD AG

Company Name: ASMALLWORLD AG

ISIN: CH0404880129

Reason for the research: Update

Recommendation: BUY

from: 08.10.2025

Target price: CHF 2.50

Target price on sight of: 12 months

Last rating change:

Analyst: Henry Wendisch

H1 Review and new CEO to foster turnaround; chg. est & PT.

Following the H1 results and the first months of the new CEO Richardson, we

take the opportunity to take a closer look at ASW. Here's our view:

H1 results look worse than they are: Reported sales declined by 25% yoy to

CHF 8.8m due to (1) reduced demand for subscriptions like "Prestige" and

"Signature" memberships amid uncertainty around the Miles & More model

change (sales of Subscriptions segment decreased by 9% yoy to CHF 7m) and

(2) a strong comparable base, especially in the Services segment. Here H1'24

contained unusually high low-margin, non-recurring event-related sales

(eNuW: CHF 2m), as well as positive one-offs from the resolution of the

legal dispute with "MAG of Life" to the tune of CHF 0.5m. Consequently, the

segment sales of Services decreased to CHF 1.7m, down 58% yoy. However, if

both positive one-offs are excluded, the underlying sales of the services

segment actually increased by 9% yoy, showing the solid development

happening at ASW. Consequently, H1 reported EBITDA declined as well and

arrived at CHF 0.4m (-54% yoy, 4.9% margin). Mind you, H1 also includes a

certain degree of CEO salary overlap and associated costs (e.g. headhunters)

to the tune of CHF 0.2m (eNuW), which we regard as one-offs. On the other

hand, this implies a solid performance in underlying EBITDA, which increased

from CHF 0.4m in H1'24 to CHF 0.6m in H1'25, despite the drop in underlying

sales.

New CEO Zain Richardson focuses on OPEX reduction, leveraging group

synergies and expanding B2B partnerships: After a handful of months in

office, Richardson has already identified OPEX reductions of "several

hundred thousands" on a FY basis, which compares well to current EBITDA

levels of c. CHF 1m (FY'25e), that are not seen to endanger future growth

prospects. Moreover, a key focus is to increase group synergies and

ultimately cross-selling opportunities as the different business units (e.g.

ASW Bespoke, ASW Collection, World's Finest Clubs) used to work rather

independently than as a team, which implies that cross-selling across the

group was technically possible, but not enforced enough. Also in light of

the business model transformation (rising member base with growing

monetization options), Richardson recently introduced a new membership

option "Advantage" (EUR 890 p.a.), filling an important price point gap

between "Premium" (EUR 79 p.a) and "Prestige" (EUR 5,590 p.a.). Moreover,

Richardson has already signed a new airline partner to diversify the partner

network and reduce the dependency on "Miles and More", but more importantly

signed a new global financial services partner (which will offer ASW

products/memberships to their customer base) and is projected to launch

already this year.

All in all, the results appear worse than what's happening in the underlying

business and the new CEO seems to tackle the right levers to foster a

sustainable turnaround in growth and profitability. Against this backdrop

and with the recent share price decline in mind, the stock currently offers

a great potential. Reiterate BUY with new PT of CHF 2.50 (old: CHF 2.80),

based on DCF.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=3c50ab6bf989170d89801db2aff536f9

For additional information visit our website:

https://www.nuways-ag.com/research-feed

Contact for questions:

NuWays AG - Equity Research

Web: www.nuways-ag.com

Email: research@nuways-ag.com

LinkedIn: https://www.linkedin.com/company/nuwaysag

Adresse: Mittelweg 16-17, 20148 Hamburg, Germany

++++++++++

Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss

bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befinden sich in der vollständigen Analyse.

++++++++++

---------------------------------------------------------------------------

The EQS Distribution Services include Regulatory Announcements,

Financial/Corporate News and Press Releases.

Archive at www.eqs-news.com

---------------------------------------------------------------------------

2209680 08.10.2025 CET/CEST

°